Decided June 30, 2022
Grande v. Eisenhower Medical Center, S261247
Yesterday, the California Supreme Court held that an employee who brings an employment class action against a staffing agency and executes a settlement agreement releasing the agency and its agents may bring a second class action against the staffing agency’s client premised on the same violations.
Background: Lynn Grande was assigned to work as a nurse at Eisenhower Medical Center by FlexCare, LLC, a temporary staffing agency. Grande filed a class action against FlexCare, alleging that it underpaid its employees. The parties reached a settlement and executed a release of claims.
Eight months after the court approved the settlement and entered judgment, Grande filed another wage and hour class action—this time against Eisenhower. Grande’s claims against Eisenhower were premised on the same violations over which she had sued FlexCare.
FlexCare moved to intervene in this follow-on case, arguing that Grande was precluded from suing Eisenhower because she had settled her claims against FlexCare in the earlier case. The trial court and the Fourth District Court of Appeal disagreed. The Court of Appeal held Grande wasn’t precluded from suing Eisenhower because it was neither a released party in the first case nor in privity with FlexCare. The court expressly disagreed with the Second District’s decision in Castillo v. Glenair, Inc. (2018) 23 Cal.App.5th 262, 266, which held that a class of workers could not “...
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